Chapter 13. Properties of Options Practice Question set contains 25 pages covering the following learning objectives:
* Identify the six factors that affect an option’s price.
* Identify and compute upper and lower bounds for option prices on non-dividend and dividend-paying stocks.
* Explain put-call parity and apply it to the valuation of European and American stock options, with dividends and without dividends, and express it in terms of forward prices.
* Explain and assess potential rationales for using the early exercise features of American call and put options.Shop Courses